Abstract Planting depth (location of root collar in relation to substrate surface grade) varies in the container production industry. Optimum planting depth varies for different species. Most container-produced plants are grown in a soilless media to allow better aeration and drainage conditions, so the effects of planting depth observed in landscape establishment may be different from those seen in container-production. This study tested if inoculation with arbuscular mycorrhizal fungi (AMF) would enhance the tolerance of container-grown Ulmus parvifolia Jacq. (lacebark elm) to above and/or below grade planting depths. The AMF plants and non-AMF plants were planted into 2.1 L black plastic containers with their root collars at substrate surface (grade), 3 cm above grade, 1 cm above grade, 1 cm below grade, or 3 cm below grade under greenhouse conditions. Growth (stem diameter, total plant dry mass) and physiological responses (leaf nutrient concentration, chlorophyll concentration, total antioxidant and nitrate reductase activities, and total phenolic content) were measured. In general, AMF plants had greater growth when planted above or below grade when compared to non-AMF plants at the same planting depth, but this was not correlated with enhanced nutrient tissue levels. Non-AMF plants planted at grade had greater growth than AMF plants at grade. Planting at grade resulted in optimum growth for U. parvifolia. Poor transplanting techniques during container production (above or below grade) were partially alleviated by inoculating plants with AMF.